Following three years of double-digit growth, Campari Group’s sales fell by 1.4% in the third quarter of the year (Q3).
Group sales for the nine months ending 30 September totalled €2.28 billion (US$2.47bn), up by 2.1% in organic terms. Net sales for Q3 were €753.6m.
The group recorded 3.8% growth in net sales for the first six months of 2024, following a net sales increase of 10.5% in the firm’s full-year 2023 results.
The group said performance was impacted by ‘macroeconomic weakness, poor weather, pressure on disposable income from inflation and consumer and distributor reduced confidence’.
Campari Group now expects net sales organic growth for the year to be in the low single digits.
The firm also pointed to an increasing share of aged premium spirits in its portfolio, following the acquisition of Courvoisier at the end of 2023.
The group has created new Houses of Brands: the House of Cognac & Champagne; the House of Aperitifs; House of Whiskey and Rum; and the House of Tequila.
Each house will focus on premiumisation and be responsible for its global category profit and loss and resource allocation.
It added that the group will ‘accelerate’ its portfolio streamlining by disposing of ‘non-core brands’.
The firm is currently looking for a chief executive officer after Matteo Fantacchiotti stepped down in September after fewer than six months in the role. In its results, Campari said it expects to appoint someone by the first half of 2025.
Sales by region
In the Americas, which represents 48% of the group’s revenue, Q3 sales grew by 1%, with the core US market flat. In the US, Espolòn grew by 11%, Aperol by 15%, and Campari by 16%.
It added that Skyy Vodka ‘continued to be pressured in line with other major players in the category’, while Wild Turkey was ‘impacted by soft category dynamics’.
Jamaica grew by 1% for the first nine months of the year, but fell by 19.7% in Q3 due to a hurricane leading to supply shortages in the rum portfolio for both local and export markets.
Other markets in the Americas grew by double digits, with ‘strong growth’ in Brazil driven by apéritifs and local brands and growth in Canada due to Aperol and Espolòn. Argentina declined but showed an improvement from Q2.
In Europe, the firm pointed to poor weather at the beginning of the spring-summer season and in September. The Europe, Middle East and Africa region comprises 48% of the group’s sales, with sales falling by 2.4% in Q3.
Italy was down by 7% in Q3, while Germany fell by 6.2%, with the group citing Aperol, Sarti Rosa and Ouzo 12 as strong performers. France fell by 2.7% and the UK by 8%.
Other markets in the region grew by 11.7%, with a strong performance in global travel retail, Spain, Austria and Greece.
In Asia-Pacific, sales fell by 8.1% in Q3, with Australia down by 8.8% for the first nine months of the year, due to ‘pressure on the Wild Turkey portfolio and decrease in co-packing activity’. Aperol, Campari and Espolòn recorded double-digit growth in the country.
Other markets in the region fell by 10.8% for the nine months until September.
By category
The firm’s ‘Global Priorities’ category, which represents 68% of its total sales, fell by 1.3% in Q3.
Aperol grew by 3.2% in the nine months until September, while Campari was up by 7.6%. Espolòn grew by 18.8% driven by the US, with acceleration in Australia, Italy and global travel retail.
Wild Turkey declined by 4.7% due to ‘soft’ performance in the US, which offset double-digit growth in Japan, Canada and other European markets.
Grand Marnier grew by 6.5%, while the Jamaican rum portfolio fell by 5.2% and Skyy fell by 10.1%.
Regional Priorities, which represents 17% of total group sales, fell by 0.6% in Q3.
Local Priorities, which represents 6% of sales, was up by 2.2% in Q3, supported by the return to growth for Campari Soda in Italy and strong growth for the Wild Turkey ready-to-drink product.
Courvoisier sales totalled €34.94m (US$37.86m) in the first nine months of 2024, with the integration of the business ‘progressing in line with the plan’. The firm expects the brand’s strategic assessment and way forward to be ready by the end of the year for a launch in 2025.
Earlier this month, the group announced the reopening of Maison Courvoisier in Jarnac, France, following a multi-year restoration project.
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Author: Lauren Bowes
